long hedge

Long hedge

The purchase of a futures contract in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price. Related: hedge, short hedge

Long Hedge

The purchase of a futures contract with the intention of accepting delivery of the underlying asset. One conducts a long hedge in order to lock in a price for an asset one must purchase in the future. This protects the holder of the futures contract from volatility in the underlying asset's price. If the spot price of the underlying asset moves in a direction more beneficial for the holder, he/she can sell the futures contract and buy the asset at the spot price. An example of a long hedge is a situation in which a company needs to buy oil by June. The spot price of oil may be $70 per barrel, but the futures price for June delivery may be only $60. The company would choose to buy the futures contract at $60 per barrel. A long hedge is also called a buy hedge.

long hedge

The purchase of a futures contract or call option to protect a short position against possible increases in the prices of commodities, currencies, indexes, or securities. For example, an investor might purchase a futures contract on fixed-income securities to protect against a decline in interest rates. Also called buying hedge.
References in periodicals archive ?
Manor Farm is approached over a long hedge and tree-lined drive with turn-circle.
The 70-metre long hedge is expected to be fully-grown in two years.
The museum hopes that the 80-metre long hedge of more than 400 trees will help recreate the setting around St Teilo's church, which was moved stone by stone from its original location outside Pontarddulais, near Swansea, to its new home at St Fagans.
Louis Chemical would buy a sufficient number of futures contracts to create the long hedge.
If the height of a long hedge has to be reduced, paint on a marker line with whitewash although on shorter runs a straight-edge or garden line is best.
Two of the three gallops managed by Jockey Club Estates are already back in operation sooner than anticipated, and the woodchip surface at Long Hedge, which suffered the most severe damage, will be repaired within a few days.
My husband and I dug up an orchard of peonies, and they grew into a long hedge.
It was growing in a long hedge in front of an apartment building, and I am reminded of it every summer when snow bushes are displayed for a brief period of time in local nurseries.
There have also been more than 500 shrubs and bushes planted and a half-mile long hedge put in around the lake.
NEW YORK & LONDON -- Long Hedge & Mutual Funds need the companies they invest in to grow.
The Fibresand gallop adjacent to the Valley Equine Veterinary Clinic and the Woodchip at Long Hedge, both leased to Jockey Club Estates, were badly damaged by the downpour, and will be out of action for days.